Provenzano Corporation manufactures two products: Product B56Z and Product D32N. The company is considering implementing an activity-based costing (ABC) system that allocates its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products B56Z and D32N. What is the activity rate for the Machine Setups activity cost pool?
A) $625.00 per setup
B) $500.00 per setup
C) $3.33 per setup
D) $2,500.00 per setup

Question

Provenzano Corporation manufactures two products: Product B56Z and Product D32N. The company is considering implementing an activity-based costing (ABC) system that allocates its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products B56Z and D32N.  What is the activity rate for the Machine Setups activity cost pool?
A) $625.00 per setup 
B) $500.00 per setup 
C) $3.33 per setup 
D) $2,500.00 per setup

Quizplus · Accepted Answer

The Answer of Provenzano Corporation manufactures two products: Product B56Z and Product D32N. The company is considering implementing an activity-based costing (ABC) system that allocates its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products B56Z and D32N.  What is the activity rate for the Machine Setups activity cost pool?
A) $625.00 per setup 
B) $500.00 per setup 
C) $3.33 per setup 
D) $2,500.00 per setup

Provenzano Corporation Manufactures Two Products: Product B56Z and Product D32N